4 Crucial Stages Of Startup Growth

To be successful as a startup it is important to understand the different stages of business growth and what it takes to be successful as an entrepreneur.  There are lots of  unknowns and uncertainty when we talk  about startups. What defines a growing startup as compared to early stage one? What are the different phases in which startup goes through before becoming multi-million dollar? How do we know if a company has the potential to become next Uber or Facebook? In this blog, we will discuss 4 crucial stages to startup growth which will answer all these questions.

Stage 1 ( Idea Validation)

In Idea Validation stage startups are focused on understanding if their business idea has a value whether customers will pay for what product/services their company offers.

In this Stage, they typically create a prototype of their product/services, talk with potential customers and take their views on it, seek financial help from family and friends, seek and establish a relationship with mentor and adviser.

Focus: Talking to all stakeholders, Prototype demonstration

Miles-stone:Paying Customers

Approx Size:1-5 people

Stage 2 (Early Stage / Seed Funding)

Once Idea has been validated your will start searching for seed fund either from a venture capitalist or family & friends. After securing seed funding business requires establishing a good paying customer base and market presence. At this stage, an entrepreneur needs to check if they are satisfying the client’s needs and if the business is on the right track.

Focus: Grow market presence and Establish customer base and

Mile-Stone: Secure Seed Funding

Approx Size: 5-20 people


4 Crucial Stages of Startup

Stage 3 (Growth Stage)

Start-up has made it through initial years and now it’s ready to grow. Customer and revenues are increasing exponentially with many new challenges and issues. Profits are strong so is the competition. Take to competition head on. The better management system will ensure your growth stage of startup doesn’t fade away.

Most startups begin to understand sales funnel matrices, lead conversion rate etc. Improving visitor to free trial conversion rate by few basis point can have a huge impact on the top line. So getting a detailed understanding of Click Through Rate (CTR), Conversion Rate and Split testing during growth stage is very important.

During this stage, it’s important to be very selective about hiring process as bad hiring can ruin culture and reputation of business with stakeholders. By now start-up may have raised Series A round of Funding to cater increasing cost of building a growing company.

Focus: Aggressive Customer Acquisition

Mile-Stone: Secure Seed Funding

Approx Size: 20-100 people

Stage 4 (Scale and Establishment)

To grow startup at massive scale in terms of scaling your technology, scaling your people, scaling marketing and scaling client base. If you have done financial forecasting perfectly and raised the enough money then you can spend aggressively on marketing and customer acquisition. As an established company focus should be on improvement and productivity.

Focus: Project Execution, Incremental Improvement & boost Productivity

Mile-Stone: Strong Revenue

Approx Size: 100-1000 people

I hope you will find this post very useful regarding 4 crucial stages of Startup Growth. Let me know if you have any question regarding Your Startup. I will reply to you ASAP. Contact Us for Free Startup Consultation on Your Idea.

Post by Gaurav Kanabar

Gaurav Kanabar is the Director of Alphanso Tech, a globally acknowledged IT consulting company providing the services in the arena of the WordPress Development Services & iPhone App Development Services. With the immense support from the adroit team, Alphanso Tech has been serving a huge client base worldwide.

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